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Nifty

Nifty started the week on a positive note but witnessed selling at higher levels to end the week on weak note. Nifty closed at 17531 with a loss of 303 points on a weekly basis.

On the weekly chart the index has formed a Bearish Engulfing candle with an upper shadow indicating selling around 18100 level. Nifty closed near an upward sloping trendline at 17500. Daily close below 17500 will lead Nifty towards 17200-17000 level. Whereas if Nifty holds above the trendline than it is expected to bounceback. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 17700 level it would witness buying which would lead the index towards 17900-18100 levels. However if the index breaks below 17400 level it would witness selling which would take the index towards 17100-16900. Nifty is now well placed above its 50, 100 SMA indicating positive bias in the short & medium term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 16900-18100 with mixed bias.

The weekly strength indicator RSI is above its respective reference lines indicating positive bias in the medium term. Whereas daily RSI given a cross over below its respective reference lines indicating that some profit booking is expected in the short term.

The trend deciding level for the day is 17615. If NIFTY trades above this level then we may witness a further rally up to 17735-17940-18060 levels. However, if NIFTY trades below 17615 levels then we may see some profit booking initiating in the market, which may correct up to 17410-17295-17090 levels

Bank nifty

Bank Nifty started the week on a positive note but witnessed selling at higher levels, however it ended the week on a positive note. Bank Nifty closed at 40777 with a gain of 361 points on a weekly basis.

On the weekly chart the index has formed a Bullish candle with a long upper shadow indicating selling at higher levels. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Bank Nifty crosses and sustains above 41150 level it would witness buying which would lead the index towards 41500-41900 levels. However if index breaks below 40500 level it would witness selling which would take the index towards 40150-39850. Bank Nifty is trading above 20, 50, and 100 day SMA's which are important short term moving averages, indicating positive bias in the medium term. Bank Nifty continues to remain in an uptrend in the short term, so buying on dips continues to be our preferred strategy. For the week, we expect Bank Nifty to trade in the range of 41900-39850 with mixed bias

The weekly strength indicator RSI is moving upwards and is quoting above its reference line indicating positive bias.

The trend deciding level for the day is 40815 If BANKNIFTY trades above this level then we may witness a further rally up to 41125-41475-41785 levels. However, if BANKNIFTY trades below 40815 levels then we may see some profit booking initiating in the market, it may correct up to 40465-40155-39805 levels

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